How extra payments shorten your mortgage
Every regular mortgage payment covers that month's interest first, and the rest reduces your balance. Any extra amount goes straight to principal, so the next month's interest is a little smaller and more of each later payment pays down the loan. The effect builds over time, which is why even small extra payments can cut years off a 30-year loan.
Enter your balance, rate and years left, then try an extra monthly amount, a one-time lump sum, or both. The calculator shows your new payoff time, how much sooner you finish and the interest you save.
Popular ways to pay off a mortgage early
- Add a fixed amount each month – for example $100 or $200 on top of the payment.
- Biweekly payments – paying half the payment every two weeks adds up to 13 full payments a year instead of 12.
- Lump sums – put part of a tax refund or bonus toward principal.
- Recast – some lenders will re-amortize the loan after a large lump sum, lowering your monthly payment for a small fee.
Frequently asked questions
Should I pay off my mortgage early or invest?
Paying extra earns a guaranteed "return" equal to your mortgage rate. Many people first build an emergency fund, get the full 401(k) match and pay off higher-rate debt, then decide based on their rate and comfort with risk.
Will extra payments lower my monthly payment?
Usually not. Your required payment stays the same and the loan simply ends sooner, unless your lender agrees to recast the loan.
Is there a penalty for paying off a mortgage early?
Most home loans today have no prepayment penalty, and FHA, VA and USDA loans do not allow one. Check your loan documents or ask your servicer to be sure.